(1) Payroll premiums shall be authorized in order to finance the payment of family and medical leave insurance benefits under this part 5, and administration of the family and medical leave insurance program.
Beginning on January 1, 2023, for each employee, an employer shall remit to thefund established under section 8-13.3-518 premiums in the form and manner determined by the division.
(a) From January 1, 2023, through December 31, 2024, the premium amount is ninetenths of one percent of wages per employee.
(b) For the 2025 calendar year, and each calendar year thereafter, the director shall set the premium based on a percent of employee wages and at the rate necessary to obtain a total amount of premium contributions equal to one hundred thirty-five percent of the benefits paid during the immediately preceding calendar year plus an amount equal to one hundred percent of the cost of administration of the payment of those benefits during the immediately preceding calendar year, less the amount of net assets remaining in the fund as of December 31 of the immediately preceding calendar year. The premium shall not exceed one and two tenths of a percent of wages per employee. The division shall provide public notice in advance of January first of any changes to the premium.
(4) (a) A self-employed individual who elects coverage under section 8-13.3-514 shall pay only 50 percent of the premium required for an employee by section 8-13.3-507 (3) on that individual's income from self-employment.
An employee of a local government who elects coverage under section 8-13.3-514 shall pay only 50 percent of the premium required for an employee by section 8-13.3-507 (3) on that employee's income from that local government employment.
An employee of a local government or a self-employed person who elects coverageunder section 8-13.3-514 shall remit the premium amount required by this subsection directly to the division, in the form and manner required by the director by rule.
An employer with 10 or more employees may deduct up to 50 percent of the premium required for an employee by section 8-13.3-507 (3) from that employee's wages and shall remit 100 percent of the premium required by section 8-13.3-507 (3) to the fund. An employer with fewer than 10 employees may deduct up to 50 percent of the premium required for an employee by section 8-13.3-507 (3) from that employee's wages and shall remit 50 percent of the premium required by section 8-13.3-507 (3) to the fund.
Premiums shall not be required for employees' wages above the contribution andbenefit base limit established annually by the federal social security administration for purposes of the Federal Old-Age, Survivors, and Disability Insurance program limits pursuant to 42 U.S.C. section 430.
The premiums collected under this part 5 are used exclusively for the payment ofFamily and medical leave insurance benefits and the administration of the program. Premiums established under this section are fees and not taxes.
An employer with an approved private plan under section 8-13.3-521 shall not berequired to remit premiums under this section to the fund.
Notwithstanding section 8-13.3-507 (2), if a local government has declined participation in the program in accordance with section 8-13.3-522:
The local government is not required to pay the premiums imposed in this section orcollect premiums from employees who have elected coverage pursuant to section 8-13.3-514; and
An employee of the local government is not required to pay the premiums imposedin this section unless the employee has elected coverage pursuant to section 8-13.3- 514.
Source: Initiated 2020: Entire part added, Proposition 118, effective upon proclamation of the Governor.
Editor's note: This section was originally numbered as 18-13.3-407 in Proposition 118 but was renumbered on revision for ease of location.